More Sunflower Producers Investing in Desiccation

By CnAgri2012-09-19 19:56:12 Print

Producers have been desiccating their sunflowers and harvest has begun, reports the National Sunflower Association (NSA).

The sunflower crop in the Northern Plains is about two weeks ahead of normal. This is allowing producers to desiccate the crop earlier than normal and take advantage of the September vs. October price spread. September prices are at a 55 cent per hundredweight premium to October. The investment in desiccation more than pays for itself in increased yields.

USDA released its latest supply and demand estimate this week. Global sunflower production for 2012/13 was forecast 1.65 million tons lower this month to 35 million tons. Prolonged summer heat and dryness in Ukraine, Russia, Kazakhstan, and Eastern Europe substantially impaired sunflower pollination this year. USDA projects that in the year ahead, soybean oil prices will gradually gain support with a steep decline in oil stocks due to a reduction in crush. This is positive news for sunflower as sun oil values are closely tied to soyoil values. Reduced sunflower production in Russia, Ukraine along with Eastern Europe coupled with a rise in soyoil values should be positive news for sunflower prices going into the next marketing year.

Dry conditions continue to push the crop to maturity, reports the NSA. Harvest is just getting underway in many areas. Some growers have desiccated to get a jump on things, while others await the first significant frost or freeze to push the crop to harvest potential.